Showing 2 posts in Valuation.
In the limited liability company context, LLC agreements sometimes provide for a buyout of a member deciding to withdraw its investment. Coming in many forms, such provisions give rise to potential valuation issues. This decision arises in that setting.
In a decision driven by unique facts, the Court of Chancery relied upon the plaintiff's proposed valuation from an unconsummated deal to value a professional services company with “erratic and sparse” cash flows. The Court concluded that the company’s business model rendered both an asset accumulation method and a discounted cash flow method inappropriate. More ›Share
This decision deals with the always difficult world of what beta to use in a DCF valuation. The Court’s analysis is an exhaustive review of the alternative approaches and is particularly helpful in valuing a publicly traded company in some financial turmoil.Share